Medical Savings Accounts

What Does Medical Savings Accounts Mean?

A Medical Savings Account (MSA) is an account where money can be deposited and used to cover healthcare expenses. Funds in an MSA are exempt from taxation.

MSAs are commonly used in conjunction with high-deductible health insurance plans.

Insuranceopedia Explains Medical Savings Accounts

Medical Savings Accounts (MSAs) are often provided by employers as part of a healthcare benefits package. Many individuals use the funds in their MSAs to cover medical expenses until they reach their insurance policy’s deductible limit. Once the MSA funds are exhausted, the insurance company covers expenses up to the policy limit.

The primary advantage of MSAs is their tax-exempt status, which helps policyholders save money on healthcare costs.